Chapter 6: An Overview of Organizations and Management
Learning Outcome 1
Describe the differences between general systems theory and classical theory.
Concepts for Lecture
1. Classical organizational theory studied organized behavior in industry starting in the
1900s, and is divided into three categories:
a. Scientific management: founded by Fredrick W. Taylor, an engineer and management
expert; focuses on organization from the manager’s perspective, and contributed to a
more efficient organization.
b. Administrative management: Primary leaders in this movement were Henri Fayol, a
2. Contrary to classical organizational theory, the general systems theory discusses the
organization and worker as whole rather than as separate entities, and is concerned with
PowerPoint Slides
1. Classical organizational theory
Studied organized behavior in industry starting in the 1900s.
2. General systems theory v. classical theory
General systems theory
o Organization and worker viewed as a whole
Suggestions for Classroom Activities
Have students perform further research on both the general systems theory and classical
Reference
Taylor, F.W. (1911). Shop Management. New York: Harper & Row.
Learning Outcome 2
Discuss the key differences among the concepts of centralized, decentralized, and team
approaches to managing people.
Concepts for Lecture
2. A decentralized approach of delegating authority within the organization refers to the
assignment of decision making away from the central office, and close to the operational
3. The team approach of delegating authority within the organization refers to the
assignment of decision making to a motivated group of people who work together to
PowerPoint Slides
1. Centralized approach
2. Decentralized approach
Decision making assigned near the operational level, away from the central office
3. Team approach
Decision making assigned to a group of people who work together, share
resources, and are committed to a common objective
Case Study: Authority and Responsibility
Suggestions for Classroom Activities
Refer students to clinical agencies where they have worked or have done their clinical.
Have a student-led discussion about the differences, and compare and contrast the
Reference
Fisher, K. (2000). Leading self-directed work teams: A guide to developing new team
Learning Outcome 3
Explain subsystems of an organization.
Concepts for Lecture
1. Some theorists such as Katz and Kahn, and Tosi and Carroll, break down the modern
organization into subsystems, or parts that comprise a whole. This perspective
2. Production or technologic subsystem refers to the major activities responsible for the end
3. The supportive subsystem (by Katz and Kahn), or boundary spanning (by Tosi and
Carroll), involves environmental transactions, such as procuring input for production or
4. Maintenance subsystem refers to the upkeep of the equipment or education of the
5. Managerial subsystem refers to the major activities of controlling, coordinating, and
6. Adaptive subsystem refers to the activities that ensure organizational survival in a
changing environment. It is the organization’s responsibility to anticipate future needs
PowerPoint Slides
1. Subsystems
Supported by theorists Katz and Kahn, and Tosi and Carroll
Modern organizations are divided into subsystems, or parts that comprise a whole.
This perspective combines human social behavior and formal organization
structure
Five conceptual subsystems
o Production or technologic subsystem
2. Production or technologic subsystem
Refers to the major activities responsible for the end product of the organization.
3. Supportive subsystem (Katz and Kahn) or boundary spanning (Tosi and Carroll)
Involves environmental transactions:
4. Maintenance subsystem
Refers to the upkeep of equipment or education of personnel.
5. Managerial subsystem
6. Adaptive subsystem
Refers to activities that ensure organizational survival in a changing environment.
Figure 6-2: The various subsystems of an organization that are also interrelated
Suggestions for Classroom Activities
Hold a teacher-led, in-class discussion about the different subsystems and how the
Reference
Katz, D., and Kahn, R. (1978). The social psychology of organizations, 2nd ed. New
Learning Outcome 4
List the various components of a social system.
Concepts for Lecture
1. A social system may be viewed as groups of individuals joined together in a network of
2. The interrelated components of a social system are: procedures, people, work, purpose,
PowerPoint Slides
1. Definition of a social system
Groups of individuals in a network of cooperative and conflicting social
2. Interrelated components of a social system
Procedures
People
Figure 6-1: A graphic representation of the various components of a social system that are
also interrelated
Suggestions for Classroom Activities
Have an in-class discussion about social systems, using Figure 6-1 as a guide. How do
Reference
Kast, F., and Rosenweig, J.E. (1985). Organization and management: A system
Learning Outcome 5
Concepts for Lecture
1. Power is the force needed to meet goals and get things done. Powerful people are
dominant, and as their power increases, they move upward in the group; as their power
2. Coercive power is applied when fear is used to ensure compliance from subordinates. An
3. Reward power is applied when the manager uses a position to provide something of value
4. Legitimate power is comparable to authority; it is the officially sanctioned right of the
5. Expert power is the use of superior knowledge and experience to have others do as the
6. Referent power is based on a leader’s capacity to inspire others to be similar to the leader.
7. Information power is based on the leader’s knowledge of, or access to, information.
PowerPoint Slides
1. Power
The force needed to meet goals and get things done
Comes from a variety of sources, and influences people in various ways.
As an individual’s power increases, she moves up in the group, and vice versa.
French & Raven identify five power bases:
o Coercive power
2. Coercive power
When fear is used to ensure compliance
3. Reward power
4. Legitimate power
Comparable to authority
5. Expert power
Use of superior knowledge and experience to have others do as the leader
6. Referent power
7. Information power
8. Connection power
Table 6-1: Skills and ways to acquire these skills for the purpose of gaining power in the
organization
Case Study: Nurse Manager Power
Suggestions for Classroom Activities
Split the class up into seven groups in correlation with the seven types of power. Have
Reference
French, J.R.P., and Raven, B. (1968). The bases of social power. In D. Cartwright & A.
Zander (Eds.), Group dynamics research theory (pp. 259269). New York: Harper &
Learning Outcome 6
Identify at least three properties of an organization.
Concepts for Lecture
1. These organization properties, summarized by Caplow and reiterated by Peter Drucker,
are:
a. All organizations closely resemble each other, so that much of what is learned by
that affords status.
b. Every organization, except the very smallest, is a cluster of suborganizations of
c. Problems of managing a large organization are similar to those of managing a
smaller organization. The role of the manager is to maintain a balance between
d. During any given interval in an organization’s history, it will be growing, stable,
or declining. Critical to the survival of any organization is regular and systematic
e. Most organizations find it easier to satisfy some of their goals than others for
PowerPoint Slides
1. Properties of an organization summarized by Caplow and reiterated by Peter Drucker
All organizations resemble each other; what is learned by managing one can be
applied to others.
Systems theory explains the interpersonal and social character of the workplace.
Case Study: Organizational Policy
Suggestions for Classroom Activities
Have students recommend an approach to solving the following conflict situation:
The nurses in the Outpatient Department in a large university hospital are
Reference
Caplow T. (1976). How to run any organization. Orlando, FL: Harcourt, Brace and
GENERAL CHAPTER CONSIDERATIONS
1. Have students study and learn key terms listed at the beginning of the chapter.
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